"We are very excited to have Valencia Group as a part of our mixed-use main street developments in both San Jose and San Antonio," says Federal CEO Steven J Guttman. "They are an important part of our process of creating irreplaceable assets that will enhance our communities for decades and create long-term value for our shareholders."

The San Antonio office of 3D International is the architect and Memphis-based McMurray Construction is the general contractor. Until January, John Tshiderer has served as development director, but he has been succeeded by Jim Kessler in a reorganization of Federal. Kessler is CEO of development in Federal's Western region.

Houston Street's upcoming projects will include a second hotel, additional retail, office and residential space. Restaurants Banana Joe's and the Palm Restaurant have already opened. When the project was launched, Federal put the Houston Street investment at $70 million, carrying with it the creation of 1,000 jobs.